Italy - Factors to watch on Dec. 27

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

For a complete list of diary events in Italy please click on .

POLITICS

President Sergio Mattarella is widely expected to dissolve parliament before the end of the week, mostly likely on Thursday. Elections are widely expected to be held on March 4.

The Italian cabinet has appointed Mario Nava as head of bourse watchdog Consob replacing the outgoing chairman, Giuseppe Vegas, a government source said on Friday.

Italy’s upper house Senate on Saturday gave parliament’s final approval to the government’s 2018 budget, clearing the way for national elections expected to be held in March.

Italy’s ruling Democratic Party (PD), hit by internal divisions and a banking scandal, is continuing to slide in opinion polls, with a new survey on Saturday putting it more than six points behind the anti-establishment 5-Star Movement.

DEBT

COMPANIES

BANCA CARIGE

Italy’s last remaining problem bank said on Friday it had raised 544.4 million euros ($645 million) following its recently concluded new share issue, topping minimum regulatory demands.

Corriere della Sera reported on Saturday that after the capital increase its top shareholder Malacalza had increased its stake in the lender to nearly 23 percent. (*) The European Central Bank and the Bank of Italy are on alert over the bank’s governance, especially the dominant position of its main investor Malacalza Investimenti, Il Messaggero said on Wednesday. Representatives from the ECB may be present at the lender’s next board meeting, the paper added.

(*) BANCO BPM

The IFRS9 accounting rules allow the lender to raise its bad loan reduction target to 11 billion euros from 8 billion without impacting its income statement, Chief Executive Giuseppe Castagna told Il Sole 24 Ore in an interview on Wednesday.

(*) INTESA SANPAOLO

The European Central Bank is increasing pressure on the lender for a more aggressive action on its sour credits, la Repubblica said on Sunday. The paper adds that two funds are bidding to manage Intesa’s non-performing loans platform and to buy a portfolio of NPLs worth 10-15 billion euros.

SAIPEM

The oil services group said on Friday it had won new contracts and additional works on existing ones for $380 million.

MONTE DEI PASCHI DI SIENA

The bank has sold the mezzanine tranche of a bad loan securitisation which is a key plank of the restructuring plan approved as part of its state bailout. As agreed in June, Monte dei Paschi sold the tranche to a banking industry support fund and said it would get the bad debts off its balance sheet by mid-2018 once it sells also the riskier junior notes.

The bank also said its newly-appointed board had confirmed Marco Morelli as chief executive at the first meeting chaired by Stefania Bariatti on Friday.

FIAT CHRYSLER

Fiat Chrysler’s U.S. unit said on Friday it would recall about 1.8 million trucks in the United States, Canada, Mexico and some other markets to fix a part if not operating could allow the driver to shift out of park without depressing the brake pedal.

MONDADORI

The publisher said on Friday it had concluded a 450 million euro five-year loan accord with Banco BPM, Intesa Sanpaolo and UniCredit, replacing existing credit lines.

(*) POSTE ITALIANE, ANIMA

After revamping its accord with asset manager Anima, Poste left the door open for a possible investment in Anima by state lender CDP, potentially by taking over part of Poste’s 10.3 percent stake, Il Sole 24 Ore said on Wednesday.

M&A, ILVA

Steelmaker ArcelorMittal has told commissioners running Italy’s Ilva plant that it wants changes made to the contract in which it agreed to buy the company in order to protect it from legal challenges in Italy.

M&A, FEDRIGONI

Private equity firm Bain Capital has signed a definitive agreement to buy Italian paper maker Fedrigoni, the companies said in a statement on Saturday. The deal’s enterprise value is 650 million euro.

M&A, ALITALIA

Italy’s government plans to enter exclusive talks with one of the three bidders for Alitalia by mid-January, Industry Minister Carlo Calenda told Corriera della Sera in an interview on Wednesday. The minister reiterated that Rome hopes to strike a deal on the sale before elections.

Trade ex-dividend: ASSITECA of 0.05 euro per share; ZEPHYRO of 0.30 euro as special dividend (not for ‘special shares’).